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Comments
You have bad advice! The TSP has super low funds (29 basis points, 0.29% fees which is way lower than Vangaurd) which helps your money grow faster. True there are less index funds to choose from but that allows you to research them more if you actually go to the website www.tsp.gov.
How much are you charging your customers Jeff?
Also, you forgot to mention the civil servants can belong to this fund...
Thanks for the great video, Jeff! Great to see another CFP giving solid, easy to access (but accurate) guidance in video format!
Thanks for spending some time on this. I agree that there are far to few options in the TSP. Good thing about it is the employer match, the ability to reduce taxable income, and the low fees. But, the overarching issue is exactly what you describe - little to no control over your investments. That's why I'm opening a Roth IRA this year. One additional source for Feds/US Military to get assistance is USAA. Glad you are helping out to spread the word and help make folks more financially savvy.
I'm in the Air Force. Do you have any companies to recommend for a Roth IRA? USAA, Edward Jones, Etrade ??
TSP gives you access to index funds for cheaper than you can find anywhere else. You can put together a well diversified portfolio that's almost certain to outperform most managed funds in the long run. I think the TSP is a great option for most people and they should contribute at least something to it if they have access. True, you have almost unlimited options to choose from in the Roth IRA account, but that freedom is a double edged sword. If you like spending several hours a week working on your investments, maybe you can do ok choosing your own investments in a Roth IRA, but if you don't, index funds are the way to go.
If you are in the military and you choose to go to a private IRA you are likely to miss out on the government matching contributions. Which are essentially FREE MONEY. So ignore this video. Use TSP at least to get the government matching contributions. Maybe he wasn't in for long enough to receive those but they add up. So even if you only have 7 or 8 funds to choose from - if you are not someone who wants to 'manage between' them the obvious choice is to use the 'lifestyle' funds. Then your money is being managed for you - and you are getting the matching contributions.
Hey my name is Jon and I'm 17 and I've recently started my first job bussing tables at a restaurant. My question is what should I do with my money so that I could make a lot of money in the future.
I disagree on your view of TSP. I retired 4.5 yrs ago from the military. Per my last annual statement from 2013, opened today, I made $5793.57. That's without any contributions to TSP the last 56 months. My "C" Fund rate of return was 32.45% "I" Fund rate of return was 22.13% Also, I pay only 29 cents per $1000 to have my account managed. Lastly, TSP has upgraded it's website with new tools and U-Tube videos.
How much are you charging your customers Jeff?
Also, you forgot to mention the civil servants can belong to this fund...